Veris Residential, Inc. (NYSE:VRE) Q3 2022 Results Conference Call November 3, 2022 8:30 AM ET
Company Participants
Taryn Fielder - General Counsel
Mahbod Nia - Chief Executive Officer
Amanda Lombard - CFO
Conference Call Participants
Stephen Sakwa - Evercore ISI
Nick Joseph - Citi
Tom Catherwood - BTIG
John Pawlowski - Green Street Advisors
Operator
Good morning, and welcome to the Veris Residential Third Quarter 2022 Earnings Conference Call [Operator Instructions. Please note, this event is being recorded.
I would now like to turn the conference over to Taryn Fielder, the General Counsel of Veris Residential. Please go ahead.
Taryn Fielder
Good morning, everyone, and welcome to Veris Residential's third quarter 2022 earnings conference call. I would like to remind everyone that certain information discussed on this call may constitute forward-looking statements within the meaning of the federal securities laws. Although we believe the estimates reflected in these statements are based on reasonable assumptions, we cannot give assurance that the anticipated results will be achieved. We refer you to the company's press release and annual and quarterly reports filed with the SEC for risk factors that impact the company.
With that, I would like to hand you over to Mahbod Nia, Veris Residential's Chief Executive Officer. Mahbod?
Mahbod Nia
Good morning, and welcome to our third quarter 2022 earnings call. I'm joined by our CFO, Amanda Lombard. During the quarter, we continued to make meaningful progress on our strategic transformation despite the significant market volatility, while delivering a fourth consecutive quarter of strong rental and NOI growth across our multifamily portfolio. As evidenced by our binding agreement to sell Harborside 1, 2 and 3 and the completion of the sale of 101 Hudson Street, we're now in the final phase of our transformation. Inclusive of these transactions and pro forma for the stabilization of Haus25, multifamily will represent approximately 98% of NOI, up from 39% around 18 months ago. Looking ahead, the sizable proceeds anticipated from Harborside 1, 2 and 3, in addition to potential further nonstrategic asset sales, will provide the company with substantial liquidity as we seek to conclude our transformation. Our 6,931-unit multifamily portfolio had occupancy of 95.8% and achieved a blended net rental growth rate of 20% during the quarter. Headline rents continue to grow and the loss to lease in the portfolio reduced from 5% to approximately 2% during the quarter as we continue to capture upside in our portfolio, notwithstanding the challenging macroeconomic backdrop.